The Government’s breakdown-prone 757 fleet will be replaced with two extra-long-range Airbus planes as part of a $2.7 billion defence investment.
Five MH-60R Seahawk helicopters, equipped with anti-submarine torpedo systems, Hellfire missiles, and machine guns, are also considered the preferred option for replacing existing marine helicopters.
Following the release of the Defence Capability Plan (DCP) earlier this year, Defence Minister Judith Collins has today announced investment decisions valued at $2.7 billion that she expects will ensure New Zealand has a “critical combat capable, interoperable and dependable fleet”.
A livestream of the announcement can be found at the top of this article.
The two new Airbus A321XLR aircraft will be acquired on a six-year lease-to-buy arrangement, Collins said, with capital costs of $620 million and four-year operating costs of nearly $81 million. These will replace the current 757s.
“New Zealand needs reliable aircraft to deploy our personnel, deliver military equipment and humanitarian aid, support the evacuation of civilians, and transport government trade and diplomatic delegations quickly, over long distances, and often at short notice.”
She said acquiring extra range aircraft reflected the importance of having plans capable of undertaking operations like “returning safely from Antarctica if it is unable to land due to conditions on the ice”.
The planes are more than 44 metres in length, have a range of 8,700km, and can accommodate 122 passengers.
The Government’s also indicated its preferred option for replacing the current maritime helicopters is the MH-60R Seahawks. This is a $2 billion plus investment.
“The MH-60R Seahawk is a great aircraft for what New Zealand needs and fulfils our objective of having a more integrated Anzac force, and the new planes will give us reliable aircraft to deploy personnel and respond to international events,” said Collins.
She said five Seahawks will “increase the offensive and defensive capability and surveillance range of New Zealand’s frigates and ensure we are interoperable with our ally Australia and other partner defence forces”.
These are expected to be procured directly through the United States’ Foreign Military Sales programme, instead of going to a wider tender. A final business case will likely be considered by Cabinet next year.
According to specifications provided by the Defence Minister’s office, these helicopters have weapon systems including Mk 54 anti-submarine torpedo, AGM-114 Hellfire air-surface missiles, crew-served machine guns; and Advanced Precision Kill Weapon System (APKWS).
Foreign Affairs Minister Winston Peters said the investment decisions show how the Government is responding to what he described as a sharply deteriorating security environment.
“Global tensions are increasing rapidly, and we must invest in our national security to ensure our economic prosperity,” he said.
“The DCP provides the foundation for our uplift in defence spending, and two-yearly reviews of the plan will allow us to adapt to an ever-changing security environment.”
Defence officials told a parliamentary select committee a few hours ago a stronger focus had been placed on progressing major projects at a faster pace, referencing efforts to replace the two Boeing 757s used by the Prime Minister for international trips as well as transporting Defence Force personnel.
The 757s had become renowned for breaking down and causing delays during trips abroad for several Prime Ministers, including Christopher Luxon.
The Government confirmed the two planes would be replaced as part of its $12 billion Defence Capability Plan, announced before Budget 2025, which would eventually push New Zealand’s defence spending to above 2% of GDP.
Replacing the 757s had an expected cost of between $600 million and $1b. Also in the plan was a spend of between $100m and $300m for enhanced strike capabilities and $300m to $600m for a new fleet of maritime helicopters.
Ministry of Defence capability delivery deputy secretary Sarah Minson today told MPs the process of replacing the 757s was a good example of how the ministry and the Defence Force were working to improve their business case development.
She noted an indicative business case had been provided to the Government in December, while an implementation business case had landed in the middle of this year.
Adam Pearse is the deputy political editor and part of the NZ Herald’s press gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.